Monday, December 6, 2010

Buy Silver

There is currently an important movement that I suggest you study; it is the buy silver movement.  It has existed forever, but its importance may have never had this potential.  Silver, just like gold, is monie.  It may not be as valuable, but it is still monie.  There are some key facts to consider while learning about silver.  I will go over some of them now.

Above ground bullion is around equal to gold.  I think this happened for two reasons.  First people forgot its importance as monie.  Second, it became an important commodity.  Technology, from medical equipment to devices, uses silver.  It is one of the most conductible metals around.  It is highly valuable in this regard.  It also continued to be used up for photography.  Now there is not much silver, which makes the market easy to corner.  But if it is rare why is it so cheap?

Currently John Pierpont Morgan, the House of Morgan, is short some insane number of silver contracts (reportedly 3.3 billion ounces).  This makes silver much much cheaper.  Why would a Major bank, the one with a level of influence that rivals Goldman Sachs, want silver to be cheap?

The Major banks do the bidding of the Federal Reserve Bank, or is it the other way around?  Either way, they operate in sync.  The silver manipulation is a smart way to keep their respected businesses going.  This is how:

Silver has historically traded at a ration of one ounce to five gallons of gasoline.  Gasoline has a direct relationship with the dollar.  Not only because the dollar is its trade unit, but because US politicians have a fancy relationship with the former "swing producer" the House of Saud.  We all know the Bush family relationship.

Now that there is no swing producer, now that the dollar can not support oil trade, the ponzi is vulnerable.  Silver is the key to depegging this FIAT ponzi from various markets, and the best thing about it is anybody who capitalizes on this does just that.  This is a way for people to take down the system, and put something of value in their pocket.


  1. So now, in my part of the US (Alaska), 1oz silver will buy 8-9 gallons of gasoline. Are you suggesting the dollar is due for a near-halving of purchase power with respect to this commodity? I have always heard that sivler is 13 times more abundant than gold in the earth. When I listened to Jim Puplavas recent silver roundup, I learned that several mining companies (great panther, majestic) are have a cost basis of under $10 an ounce for production. Those factors seem to point to a correction, unless monetary demand is so great that supply will still be squeezed.....

  2. "Are you suggesting the dollar is due for a near-halving of purchase power with respect to this commodity?"

    You have a great point; all resources are cheaper where they are more available. Alaska is one of the only places in America that produces oil with a relatively high EROEI.

    As for silver, the above ground supply of bullion is rumored to rival gold's. Below ground silver is more plentiful than gold, for now. Gold peaked production at the latest by '01, and silver has yet to peak. Silver is hard to mine though, due to the fact that it only grows with other metals. You will never find a silver vein without another metal with it.

    As for the dollar, I do not believe that it has any purchasing power what so ever. But as far as what it will do in the near future, I think a YoY loss of around 33% sounds about right.

    Thanks for commenting.